Shields Company has gathered the following data on a proposed investment project

Question

Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

The internal rate of return on the investment is closest to: (Round discount factor(s)  to 3 decimal places and final answer to the closest interest rate.)

Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) The internal rate of return on the investment is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.) 6% 8% 4% 2%

Explanation / Answer

$620,000/$86000=7.200

From exhibit table :6% to 7%

By interpolation we get :6.44%

hence IRR is nearest to 6%

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